Isiah Thomas put a damper yesterday on expectations the Knicks could make a deal by the Feb. 22 trade deadline, indicating he’s not willing to add payroll.

“Right now we’re in a place where we’re good enough and don’t have to spend a lot more money,” the Knicks president/coach Thomas said.

Though he denies it, indications are very strong Thomas is not allowed to add significantly to the league’s highest payroll ($125 million). There’s also an organizational plan not to part with any of the young core players, barring getting back a superstar.

Thomas has not made a trade since acquiring Steve Francis for Trevor Ariza and Penny Hardaway last Feb. 22 – a fiasco.

Thomas may be so desperate to make some sort of deal that he recently inserted center Jerome James into the starting lineup over Channing Frye, possibly as a showcase. Thomas said he will stick with the alignment for good.

Or perhaps he will stick with it until the trade deadline is over. James, who has a five-year, $30 million contract, is one of the players they could trade without adding payroll.

Thomas has his hands tied because he bought out his two big trade pawns – the expiring contracts of Maurice Taylor and Jalen Rose – in training camp.

The demoted Frye probably has the most value corresponding to the Knicks’ willingness to trade him, but they would be looking for a stud in return. Thomas has talked about adding an elite shooter as their next piece.

When asked if he regretted losing his expiring-contract trade chips, Thomas said, “We’re happy where we are in our state of being. When we first got here, we needed to use all the weapons at our disposal – expiring contracts, trying to get talent and draft picks. It was the only way to build a team.”

Asked if anyone was untouchable, Thomas said with great exaggeration, “In my mind, they’re all untouchable right now. What do you want me to say?”

Thomas claims he’s under no payroll restrictions on making moves. “That is very inaccurate,” Thomas said.

*

David Lee had a nasty black eye he got from a Tim Thomas forearm in the first half.

“I am in no pain right now,” Lee said.

Tim Thomas, included in the Eddy Curry package, played his first game at the Garden last night since the trade.

*

Isiah Thomas indicated that Tim Thomas – a native of Paterson, N.J. – may have been affected by hometown pressure during his Knick stint.

“With Tim, he definitely can handle playing here,” Isiah said. “But with him being from here, like [Stephon] Marbury being from here, it’s a little bit rougher for those two.”